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The Cost of Delaying Your WMS Decision

The Cost of Delaying Your WMS Decision

If you’re thinking about putting your WMS decision on hold, think again. Why wait? Pausing your Warehouse Management System (WMS) decision could be costing you more than you realize. What’s driving the hesitation—uncertainty about ROI, competing priorities, or fear of change? Instead of holding off, this is the perfect moment to reassess your goals, prioritize what matters most, and take control of your operations. Let’s explore how you can turn hesitation into progress and make a decision that drives real results.

The Hidden Costs of Waiting

Every delay comes at a price. Every month you postpone your WMS decision means wasted dollars, missed opportunities, and inefficiencies that stack up over time. Worse yet, the money lost during this waiting period is gone forever—you can’t recover it. Instead of letting hesitation hold you back, consider the long-term impact of inaction and what’s at stake if you don’t move forward now.

The High Cost of Delaying Decisions

Consider an electronics retailer that has been “sitting” on their WMS decision for 18 months. During this time, they’ve faced higher labor costs, slower throughput, and missed opportunities to optimize inventory. Conservative estimates suggest these delays have resulted in a profit loss of $3,000 per day—amounting to nearly $2 million over 18 months. To recover from these losses, they would need extraordinary cost savings or sales growth once they finally implement their WMS. Delays don’t just stall progress; they actively erode your bottom line.

But it’s not just about long-term losses—short-term costs add up too. Hank Barnes, Chief of Research for Buying Behavior at Gartner, says in his article, “Estimating the Costs of No Decision – A Multi-Billion Dollar Problem”, that both planned and unplanned buying efforts come with significant financial consequences when no decision is made.

For planned buying efforts, where indecision occurs later in the process, the estimated costs are:

  • $70,000 for the buying organization
  • $100,000 for vendors (4 vendors at $25,000 each)

For ad hoc buying efforts, where indecision happens earlier, the estimated costs are:

  • $35,000 for the buying organization
  • $60,000 for vendors (3 vendors at $20,000 each)

These figures underscore the substantial financial impact of indecision in procurement, highlighting the importance of taking action to avoid unnecessary losses.

What’s Holding You Back?

Most delays in WMS decisions come down to a few key factors:

  • Competing Projects: Other initiatives may feel more urgent, but supply chain inefficiencies often affect every corner of the business, making a WMS a foundational investment.
  • Uncertainty: A lack of clarity about the best path forward can paralyze decision-making. Companies freeze because there’s no “perfect” choice in front of them.
  • Risk Aversion: Fear of imperfection or failure leads many to delay. However, success doesn’t come from waiting for certainty; it comes from taking calculated risks and moving forward with confidence.

If you’ve been stuck in decision-making limbo, it’s time to turn hesitation into action. Here’s what it takes to stop delaying and start moving forward with confidence:

1. Embrace Imperfection: Decisions Don’t Have to Be Perfect to Move Forward

Decision-making in business is rarely black and white. Waiting for a perfect solution only leads to stagnation. Adopt a mindset that values progress over perfection. Compromises will be part of the process, but even imperfect gains are better than no gains at all. Great leaders recognize that taking action, even with incomplete information, often leads to better results than doing nothing. Personally, I love these books on decision-making.

2. Hard Numbers: Face the Facts

Let the data guide you. If you’re hesitant, start by gathering the hard numbers:

  • Calculate your potential ROI.
  • Assess your current service levels and how they’re falling short.
  • Quantify the impact on inventory reduction and labor efficiency.

When you’re staring at the numbers on a spreadsheet, the cost of inaction becomes impossible to ignore. If you’re not sure where to start, Made4net’s WMS ROI Calculator makes it easy to assess your current operations and project the financial impact of a WMS based on real data. By entering a few numbers you can rapidly get clear insights into the benefits across key operational areas, including:

Inbound Benefits

  • Pre-Receiving
  • Receiving
  • Putaway

Outbound Benefits

  • Replenishment
  • Picking – Order Accuracy & Fill Rate
  • VAS (Value-Added Services)
  • Staging
  • Packing
  • Loading
  • Shipping

3. Expert Guidance: Find a Trusted Partner

Yes, implementing a WMS is challenging. Most companies only do it once or twice in their lifetime. That’s why you need a trusted partner who can provide tools, strategy, and support to make the process as seamless as possible. A good partner isn’t just selling you software; they’re offering a roadmap for success.

At Made4net, we’re here to demystify the process. From evaluating your warehouse complexity to finding a solution tailored to your needs, we make sure you’re set up for long-term success. Need advice on where to start? Give us a call – we’re happy to help you explore your options without pressure.

Don’t Let Delays Define Your Strategy

Every day you delay, you’re leaving money on the table. The longer you wait, the harder it becomes to recover from lost opportunities and inefficiencies. It’s time to act. With the right mindset, accurate data, and expert support, you can make a confident decision that drives measurable results for your business.